Werner: No Tax on Overtime from 2025-2028? | Quick Tax Tip

New tax proposal offers four years of relief for qualified workers, starting retroactively in 2025.

Quick Tax Tip
With Art Werner
CPE Today

During his campaign rallies, Donald Trump made repeated promises to eliminate taxes on overtime pay, and that promise has now been incorporated into legislative language. According to tax expert Art Werner, the proposed tax break is indeed included in the new tax bill, and it’s one of the few provisions that start early and end early.

• Click here for more Art Werner

“This is one of the parts of the bill that actually sunsets,” said Werner in a recent episode of Quick Tax Tip. “It goes from 2025 to 2028, unlike the rest of the bill, which largely begins in 2026.”

The provision eliminates federal tax on qualified overtime compensation, but don’t get too excited just yet. The deduction only applies under very specific conditions.